The country of Kemper is on its aggregate production function at point W in the above figure. If the population increases with no change in capital or technology, what will happen to the economy? Explain your answer.

The country of Kemper is on its aggregate production function at point W in the above figure. If the population increases with no change in capital or technology, what will happen to the economy? Explain your answer.

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter20: Growth And Less Developed Countries

Section: Chapter Questions

Problem 2SQ

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Question

Refer to the figure above. The country of Kemper is on its aggregate production function at point W in the above figure. If the population increases with no change in capital or technology, what will happen to the economy? Explain your answer.

Real GDP (billions of 2002 dollars)
Labour (billions of hours per year)

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